Job creation in Alabama: Financing, website suggested for business

A commission seeking to help create more private-sector jobs in Alabama on Monday recommended the state create an authority to help finance small businesses and to set up a new website designed to help entrepreneurs cut through government red tape.

Those were among nine policy recommendations by the Speaker's Commission on Job Creation, established in February by House Speaker Mike Hubbard, R-Auburn. A group of 15 commission committee members chaired by State Rep. Phil Williams, R-Huntsville, came up with the proposals after holding public hearings across the state.

The committee included three Birmingham members: McWane Inc. President Ruffner Page, CTS co-owner Sanjay Singh and Myla Choy, senior vice president of public policy for the Birmingham Business Alliance. In a prepared statement, Hubbard said the commission's ideas could make a real difference in turning Alabama's economy around.

"I applaud the fine work of the commission in gathering truly inventive concepts and forming them into achievable recommendations," Hubbard said.

Hubbard said some of the commission's recommendations already have been drafted into legislation to ensure they could pass before the 2011 Regular Session ends.

The commission held four "business leadership exchanges," or public hearings, in Birmingham and other cities throughout the state to seek suggestions and hear concerns from small business owners. In addition, the group solicited ideas via email and Facebook

State contract awareness: The commission recommends the creation of a website that provides a comprehensive listing of all state procurements greater than $2,500. Many business owners said they had difficulty acquiring information on public contracts on which their companies might gain work and create jobs.

Capital assistance: Among the most common struggles the committee heard from small business owners was access to capital via traditional sources, such as banks and credit unions. Many start-up and existing businesses could greatly benefit from participating in a venture capital opportunity.

The commission recommended the formation of a state database of businesses in Alabama that are seeking venture capital funding.

Small business financing authority: The commission recommended the establishment of a state authority to assist small businesses with financing issues by making direct loans, helping small businesses attract more banking partners and meeting a variety of small business credit needs.

Small business online fast track: A state-funded "Small Business Online Fast Track" website could give small businesses a "one-stop" interface to access relevant local, county, state, and federal regulations.

This site would include portals that allow companies to apply for business permits and licenses, pay applicable taxes and fees, and research appropriate laws and regulations. This website would be similar to alabama.gov, which offers numerous resources and information to Alabama residents at the click of a mouse.

Targeted tax credits for international companies: U.S. federal trade policy and state efforts to recruit foreign direct investment for local economic development are sometimes at odds, creating both challenges and opportunities in efforts to recruit capital investment and create new jobs in Alabama.

Legislation would authorize the governor to offer qualifying companies a transferable income tax credit to offset tariff costs as an incentive to create jobs in Alabama. No other state currently offers such an incentive so Alabama would be "first to market" with the concept, the commission said.